Management for RBI

7/25/2019 Management for RBI

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Managementinbusinessesand organizationsis the function that coordinates the efforts of

people to accomplish goals andobjectivesby using available resources efficiently and

effectively.

Management includesplanning,organizing, staffing, leadingor directing, andcontrollingan

organizationto accomplish the goal or target. Resourcingencompasses the deployment and

manipulation of human resources,financialresources,technologicalresources, and natural

resources.Management is also anacademic discipline, a social sciencewhose objective is to

study social organization.

Thus the importance of management can be summarized as below-

Formulate objectives and goals: -Management determines the objectives and main

goals for the organization.

Innovation: -Management encourages to using new technology and ideas. nnovation

ma!es the organization more efficient.

Guidance: -Management provides guidance to the wor!ers to wor! properly and

efficiently.

Motivation: -Management motivates the wor!ers to wor! hard by providing them

various incentives. They also solve their personal problems.n this way they can boost the

productivity and profitability of the organization.

Reducing cost by increasing output: -Management does wor! through planning,

organizing and controlling" thus, it reducing the cost and increasing the output.

Optimum utilization of resources: - Management utilizes all the physical and human

resource effectively" this leads to efficiency in organization. Management providesma#imum utilization of scare resources by selecting its best possible alternate. t avoids

wastage to utilize proper resources.

Selection of ell !ualified "uman poer: -Management selects well $ualified and

e#pert human power for different wor!s.

#stablis"es #!uilibrium:-Management helps in serving an organization in its dynamic

environment. t enables the organization to survive in changing environment.The

environment of organization changes due to e#ternal comple#ities and hence

management has to deal with it. To establish sound organizational structure is one of theobjectives of management.
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$seful for society: - Management provided good standard of living to his wor!ers. %nd

management provides useful and $uality products to the consumers.

%t the last, in the word of &eter 'ru!er,

(Management is the dynamic life giving element in every business without it the resources

of production remains resources and never become production).

Nature of Management

The nature of management has the following features.

$niversal process: -Management is universal in nature" it is applied in all types of process li!e

commercial, social or political. Management e#ists everywhere in universe. The basic principles

of management can be applied everywhere, whether they are business or non-business

organization.

%ontinuous &rocess: - Management is a never ending process. Management is a continuous

process because it always carries the past decisions for the future course of action to achieve

organization goals.

Multi-disciplinary met"od: - Management is basically multi-disciplinary" it depends on the

proper !nowledge and s!ill of various disciplines such as economics statistics, anthropology,

psychology, sociology etc.

Group activity: -Management re$uires the use of group-efforts to achieve their goal.

Management is a vital part of group activities. Management unites with their goal what they

cannot achieve individually.

Intangible force: -Management is intangible. t is an unseen force, but its presents seem in the

form of results.


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Social Management: -Management is a social process in nature, it essentially involves

managing people, it concern to developing, retaining and motivating people at wor! place and

also care of their satisfaction.

%oordinating force: -Management cannot do anything by them. They should get their wor!

done by organization*s member. n the any organization, management coordinates the efforts of

human recourse through orderly.

Goal oriented: -Management is a goal oriented in nature. t wor!s only to achieve particular

goal which decide by the organization.

Relative' not absolute principles: -Management principles are relative not absolute, because

they should be applied according to need and condition of the organization.

(n integrative met"od: -Management integrated the living and non-living resources to achieve

the desired goal.

Scope of management ) Functional areas of management:

Production management

Marketing management

Financial management

Personal management

Production management:

Production means creation of utilities by converting raw material in to final product by various scientific methods and

regulations. It is very important field of management. Various sub-areas of the production department are as follows.

Plant lay out and location: This area deals with designing of plant layout, decide about the plant location for various

products and providing various plant utilities

Production planning:Managers has to plan about various production policies and production methods.


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Material management:This area deals with purchase, storage, issue and control of the material reuired for

production department.

Research and Development:This area deals with research and developmental activities of manufacturing

department. !efinement in e"isting product line or develop a new product are the ma#or activities.

Quality Control:$uality control department wor%s for production of uality product by doing various tests which

ensure the customer satisfaction.

Marketing management:

Mar%eting management involves distribution of the product to the buyers. It may need number of steps. &ub areas

are as follows

Advertising:This area deals with advertising of product, introducing new product in mar%et by various means and

encourage the customer to buy thee products.

Sales management: &ales management deals with fi"ation of prices, actual transfer of products to the customer

after fulfilling certain formalities and after sales services.

Market research: It involves in collection of data related to product demand and performance by research and

analysis of mar%et.

Finance and accounting management:

'inancial and accounting management deals with managerial activities related to procurement and utili(ation of fund

for business purpose. Its sub areas are as follows

Financial accounting: It relates to record %eeping of various financial transactions their classification and

preparation of financial statements to show the financial position of the organi(ation.

Management accounting: It deals with analysis and interpretation of financial record so that management can ta%e

certain decisions on investment plans, return to investors and dividend policy

Taation:This area deals with various direct and indirect ta"es which organi(ation has to pay.

Costing: )osting deals with recording of costs, their classification, analysis and cost control.


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Personnel Management:

Personnel management is the phase of management which deals with effective use and control of manpower.

'ollowing are the sub areas of Personnel management

Personnel planning: This deals with preparation inventory of available manpower and actual reuirement of wor%ers

in organi(ation.

Recruitment and selection: This deals with hiring and employing human being for various positions as reuired.

Training and development: Training and development deals with process of ma%ing the employees more efficient

and effective by arranging training programmes. It helps in ma%ing team of competent employees which wor% for

growth of organisation.

!age administration:It deals in #ob evaluation, merit rating of #obs and ma%ing wage and incentive policy for

employees.

"ndustrial relation: It deals with maintenance of overall employee relation, providing good wor%ing conditions and

welfare services to employees.

Management process

Management processis a process of setting goals,planningand+or controllingthe organizingand leading the e#ecution of any type of activity, such as:

aprojectproject management process or

a process process managementprocess, sometimes referred to as the process

performance measurement and management system.

%n organizations senior managementis responsible for carrying out its management process.

/owever, this is not always the case for all management processes, for e#ample, it is theresponsibility of the project manager to carry out a project management process.

According to Henry Fayol, To manage is to forecast and plan, to organize, to

command, & to control. Whereas Luther ullic! has gi"en a !ey#ord $POSDCORB$

#here % stands for %lanning, for rganizing, ' for 'ta(ng, ) for )irecting, *o for

*o+ordination, for reporting & - for -udgeting. -ut the most #idely accepted are

functions of management gi"en y /0T1 and $)002L i.e. Planning,

Organizing, Stafng, Directingand Controlling.

1. Planning
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t is the basic function of management. t deals with chal!ing out a future course of action

0 deciding in advance the most appropriate course of actions for achievement of pre-

determined goals. %ccording to 1223T4, (&lanning is deciding in advance - what to do,

when to do 0 how to do. t bridges the gap from where we are 0 where we want to be).

% plan is a future course of actions. t is an e#ercise in problem solving 0 decision

ma!ing. &lanning is determination of courses of action to achieve desired goals. Thus,

planning is a systematic thin!ing about ways 0 means for accomplishment of pre-

determined goals. &lanning is necessary to ensure proper utilization of human 0 non-

human resources. t is all pervasive, it is an intellectual activity and it also helps in

avoiding confusion, uncertainties, ris!s, wastages etc.

2. Organizing

t is the process of bringing together physical, financial and human resources and

developing productive relationship amongst them for achievement of organizational

goals. %ccording to /enry 5ayol, (To organize a business is to provide it with everything

useful or its functioning i.e. raw material, tools, capital and personnel*s). To organize a

business involves determining 0 providing human and non-human resources to the

organizational structure. 2rganizing as a process involves:

3denti4cation of acti"ities.

*lassi4cation of grouping of acti"ities.

Assignment of duties.

)elegation of authority and creation of responsiility.

*oordinating authority and responsiility relationships.

3. Stafng

t is the function of manning the organization structure and !eeping it manned. 6taffing

has assumed greater importance in the recent years due to advancement of technology,

increase in size of business, comple#ity of human behavior etc. The main purpose o

staffing is to put right man on right job i.e. s$uare pegs in s$uare holes and round pegs in

round holes. %ccording to 1ootz 0 2*'onell, (Managerial function of staffing involves

manning the organization structure through proper and effective selection, appraisal 0

development of personnel to fill the roles designed un the structure). 6taffing involves:

5anpo#er %lanning6estimating man po#er in terms of searching,choose the person and gi"ing the right place7.
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ecruitment, 'election & %lacement.

Training & )e"elopment.

emuneration.

%erformance Appraisal.

%romotions & Transfer.

4. Directing

t is that part of managerial function which actuates the organizational methods to wor!

efficiently for achievement of organizational purposes. t is considered life-spar! of the

enterprise which sets it in motion the action of people because planning, organizing and

staffing are the mere preparations for doing the wor!. 'irection is that inert-personnel

aspect of management which deals directly with influencing, guiding, supervising,motivating sub-ordinate for the achievement of organizational goals. 'irection has

following elements:

'uper"ision

5oti"ation

Leadership

*ommunication

Supervision-implies overseeing the wor! of subordinates by their superiors. t is the act

of watching 0 directing wor! 0 wor!ers.

Motivation-means inspiring, stimulating or encouraging the sub-ordinates with zeal to

wor!. &ositive, negative, monetary, non-monetary incentives may be used for this

purpose.

*eaders"ip-may be defined as a process by which manager guides and influences the

wor! of subordinates in desired direction.

%ommunications-is the process of passing information, e#perience, opinion etc from

one person to another. t is a bridge of understanding.

5. Controlling
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t implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose of

controlling is to ensure that everything occurs in conformities with the standards. %n

efficient system of control helps to predict deviations before they actually occur.

%ccording to Theo Haimann, (7ontrolling is the process of chec!ing whether or not

proper progress is being made towards the objectives and goals and acting if necessary, to

correct any deviation). %ccording to 1oontz 0 2*'onell (7ontrolling is the

measurement 0 correction of performance activities of subordinates in order to ma!e

sure that the enterprise objectives and plans desired to obtain them as being

accomplished). Therefore controlling has following steps:

a. 2stalishment of standard performance.

. 5easurement of actual performance.

c. *omparison of actual performance #ith the standards and 4nding outde"iation if any.

d. *orrecti"e action.

MA#A$%R"A& R'&%S "# 'R$A#"(AT"'#SManagement Roles:

Managers fulfill a variety of roles. % role is an organized set of behaviors that is associated with

a particular

office or position.

'r. /enry Minzberg, a prominent management researcher, says that what managers do can best

be

described by loo!ing at the roles they play at wor!. The term management role refers to specific

categories

of managerial behavior. There are three types of roles which a manager usually does in any

organization.

Interpersonal roles are roles that involve people subordinates and persons outside the

organization and

other duties that are ceremonial and symbolic in nature. The three interpersonal roles include

being a

figurehead, leader, and liaison.

Informational roles involve receiving, collecting, and disseminating information. The three

informational

roles include a monitor, disseminator, and spo!esperson.


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+ecisional roles revolved around ma!ing choices. The four decisional roles include

entrepreneur,

disturbance handler, resource allocator, and negotiator.

n the late 89;s, /enry Mintzberg concluded that managers perform 8; different, but highly

interrelated

roles.

5ollow-up studies of Mintzbergs role categories in different types of organizations and at

different

managerial levels within organizations have generally supported the notion that managers

perform similar

roles.

/owever, the more traditional functions have not been invalidated. n fact, the functional

approach still

represents the most useful way of classifying the managers job.

%s depicted in following table, Mintzberg delineated ten managerial roles in three categories.a,

Interpersonal roles grow directly out of the authority of a mangers position and involve

developing and maintaining positive relationships with significant others.

. The figure"eadperforms symbolic legal or social duties.

/. The


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The four major functions of management--planning, organizing, leading, and controlling provide

the purpose for managers ta!ing the roles they do.

*eaders"ip

The word =leadership= can bring to mind a variety of images. 5or e#ample:

% political leader, pursuing a passionate, personal cause.

%n e#plorer, cutting a path through the jungle for the rest of his group to follow.

%n e#ecutive, developing her companys strategy to beat the competition.


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/, Intelligence:


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, &olicy Ma1er:%n important function of the leader of any social group is to plan out the

group goals objectives and policies. /e has to lay down specific policies and objectives and

inspire subordinates to wor! towards the attainment of the goal.

/, &lanner:The leader also functions as a planner. /e decides the ways and means that are to

be adopted to achieve the objective of the group. /e draws up both long-term and short-term

plans. Aased on it, he prepares a step-by-step plan to achieve the group*s objectives. /e also

plans for contingencies or une#pected events.

0, #;ecutive:6etting goals and drawing plans is of no use until and unless they are

implemented. n his e#ecutive function, the leader has to ensure that the plans are e#ecuted. The

leader has to coordinate the activities of the group. %s an e#ecutive, the leader does not carry out

wor! or activities himself but assigns it to other group members and ensures that they

implemented.

2, #;ternal Group Representative:The leader has to assume the role of representative of

the group in its e#ternal relations. %ll incoming and outgoing communications are channeled

through the leader. Members of other groups deal with the leader as a representative of the

particular group. /e is the official spo!esperson of the group.

3, %ontroller of Internal Group Relations"ip:The leader controls the internal relations

among the members of the group. %ll communication in the group is channeled through him. /e

tries to establish good relations among the group members. /e encourages team spirit and tries to

develop the group in to a cohesive unit.

4, %ontroller of Reard and &unis"ment:The leader uses the power to give rewards and

punishments to motivate, discipline and control group members. /e rewards members who

contribute and wor! towards the attainment of group goals and punishes those obstruct the

group*s progress.

Rewards may be in the form of cash rewards, appreciation in public, promotion, increased status

etc. &unishment may be in the form of scolding, ta!ing away responsibility assigned, penalties

etc.

6, (rbitrator and Mediator:The leader acts an arbitrator and mediator when there areconflicts or differences in the group. /e must resolve disputes in a fair and just manner. /e tries

to establish good inter-group relationships, reduce tensions in the group and establish harmony.

7, #;emplar:The leader serves as a role model to the members of the group. /e must serve

an e#ample for other to follow and set high standards. The leader must Cwal! the tal!.* /e should

practice the ideology, beliefs, values and norms laid down in the group,


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8, Fat"er Figure:The leader has to sometimes play the emotional role of a father figure for

members of the group. /e has to be a source of psychological and moral support to the

followers. /e guides his followers not only in wor! related issues but also helps in their personal

life. /e sometimes acts as a punching bag for the frustrations of the followers. The followers

vent out their feelings on him.

9, Scapegoat:The leader is accountable for the performance of the group. /ence when the

group does well the leader gets a lot of credit for it. /owever, when the group performs poorly or

fails the leader is held responsible for it even though the leader did everything possible. Thus he

has to play the role of a scapegoat.

Types of *eaders"ip Styles'ifferent types of leadership styles e#ist in wor! environments. %dvantages and disadvantages

e#ist within each leadership style. The culture and goals of an organization determine which

leadership style fits the firm best. 6ome companies offer several leadership styles within the

organization, dependent upon the necessary tas!s to complete and departmental needs.

Laissez+Faire

% laissez-faire leader lac!s direct supervision of employees and fails to provide regular feedbac!

to those under his supervision. /ighly e#perienced and trained employees re$uiring little

supervision fall under the laissez-faire leadership style. /owever, not all employees possess

those characteristics. This leadership style hinders the production of employees needing

supervision. The laissez-faire style produces no leadership or supervision efforts from managers,

which can lead to poor production, lac! of control and increasing costs.

Autocratic

The autocratic leadership style allows managers to ma!e decisions alone without the input of

others. Managers possess total authority and impose their will on employees. 3o one challenges

the decisions of autocratic leaders. 7ountries such as 7uba and 3orth 1orea operate under the

autocratic leadership style. This leadership style benefits employees who re$uire close

supervision. 7reative employees who thrive in group functions detest this leadership style.

Related Reading:


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to the decision-ma!ing process. t causes them to feel as if their opinions matter. Dhen a

company needs to ma!e changes within the organization, the participative leadership style helps

employees accept changes easily because they play a role in the process. This style meets

challenges when companies need to ma!e a decision in a short period.

Transactional

Managers using the transactional leadership style receive certain tas!s to perform and provide

rewards or punishments to team members based on performance results. Managers and team

members set predetermined goals together, and employees agree to follow the direction and

leadership of the manager to accomplish those goals. The manager possesses power to review

results and train or correct employees when team members fail to meet goals. Bmployees receive

rewards, such as bonuses, when they accomplish goals.

Transformational

The transformational leadership style depends on high levels of communication from

management to meet goals.


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n 8E;, /erbert 6pencer, an Bnglish philosopher disputed the great man theory by affirming that

these heroes are simply the product of their times and their actions the results of social

conditions.

Trait Theory (1930's - 1940's)

The trait leadership theory believes that people are either born or are made with certain $ualitiesthat will ma!e them e#cel in leadership roles. That is, certain $ualities such as intelligence, sense

of responsibility, creativity and other values puts anyone in the shoes of a good leader. n fact,

@ordon %llport, an %merican psychologist,=...identified almost 8E,;;; Bnglish personality-

relevant terms= Matthews, 'eary 0 Dhiteman, F;;G, p. G.

The trait theory of leadership focused on analyzing mental, physical and social characteristic in

order to gain more understanding of what is the characteristic or the combination of

characteristics that are common among leaders.

There were many shortfalls with the trait leadership theory. /owever, from a psychology ofpersonalities approach, @ordon %llports studies are among the first ones and have brought, for

the study of leadership, the behavioural approach.

n the 89G;s the field of &sychometrics was in its early years.

&ersonality traits measurement werent reliable across studies.

6tudy samples were of low level managers

B#planations werent offered as to the relation between each characteristic and its impacton leadership.

The conte#t of the leader wasnt considered.

Many studies have analyzed the traits among e#isting leaders in the hope of uncovering those

responsible for ones leadership abilitiesH n vain, the only characteristics that were identified

among these individuals were those that were slightly taller and slightly more intelligentH

Behavioural Theories (1940's - 1950's)

n reaction to the trait leadership theory, the behavioural theories are offering a new perspective,

one that focuses on the behaviours of the leaders as opposed to their mental, physical or social

characteristics. Thus, with the evolutions in psychometrics, notably the factor analysis,

researchers were able to measure the cause an effects relationship of specific human behaviours

from leaders. 5rom this point forward anyone with the right conditioning could have access to

the once before elite club of naturally gifted leaders. n other words, leaders are made not born.
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The behavioural theories first divided leaders in two categories. Those that were concerned with

the tas!s and those concerned with the people. Throughout the literature these are referred to as

different names, but the essence are identical.

Contingeny Theories (19!0's)

The 7ontingency


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8. #ffective leaders are clear on "at matters' communicate "at matters' and model t"edesired values and be"aviours,neffective leaders are either not clear on what matters or

simply not able to able-willing to rule some stuff out. neffective leaders suc! at communicatingwhat matters. %nd they don*t live-model-embody the fine sounding values, beliefs, and

behaviours that they tal! about.

F. #ffective leaders name and insist on dealing it" t"e most important issues no matter

"o unpleasant t"ese issues are. neffective leaders find all !inds of reasons and e#cuses fornot dealing with the real issues and instead spend their time on what they are comfortable with.

G. #ffective leaders focus on getting a rounded-realistic-fact based picture of reality, (nd assuc" t"ey give real t"oug"t to "o needs to ta1e part in t"e conversation' and "o to create

a conte;t t"at calls fort" t"e


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The active resource of an organization is human resource. 2ther resources remain inactive unless

there are competent people to utilize the available resources for the production of goods and

services. /uman brain has a limitless energy to thin! and act in a productive way. /ence,competent and $ualified human resource is a !ey factor of organizational success. n this regard,

the emergence of human resource development /R' plays a vital role in enhancing the

entrepreneurial s!ill of people.

/uman Resource 'evelopment /R' is a process of developing s!ills, competencies,

!nowledge and attitudes of people in an organization. The people become human resource onlywhen they are competent to perform organizational activities. Therefore, /R' ensures that the

organization has such competent human resource to achieve its desired goals and objectives.

/R' imparts the re$uired !nowledge and s!ill in them through effective arrangement of training

and development programs. /R' is an integral part of /uman Resource Management /RMwhich is more concerned with training and development, career planning and development and

the organization development. The organization has to understand the dynamics of /R and

attempt to cope with changing situation in order to deploy its /R effectively and efficiently. %nd

/R' helps to reach this target.

/ence, /R' is a conscious and proactive approach applied by employers which see!s tocapacitate employees through training and development to give their ma#imum to the

organization and to fully use their potential to develop themselves.

Nature Of HRD

. /R' is a continuous process

/. /R' concerned with behavioral !nowledge.

0. /R' is a well integrated system

2. /R' provides better $uality of life.

3. /R' focuses on all round development of human resources.

O+,ecti(es o% &RD-

The prime objective of human resource development is to facilitate an organizational

environment in which the people come first. The other objectives of /R' are as follows:

1 *uity+

Recognizing every employee at par irrespective of caste, creed, religion and language, can create

a very good environment in an organization. /R' must ensure that the organization creates a

culture and provides e$ual opportunities to all employees in matters of career planning,promotion, $uality of wor! life, training and development.

, loyaility+

Bmployability means the ability, s!ills, and competencies of an individual to see! gainful

employment anywhere. 6o, /R' should aim at improving the s!ills of employees in order to

motivate them to wor! with effectiveness.


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3 ."a#taility+

7ontinuous training that develops the professional s!ills of employees plays an important role in

/R'. This can help the employees to adapt themselves to organizational change that ta!es place

on a continuous basis.

&RD $nctions-5R+ functions include t"e folloing:

8. Bmployee training and development,

F. 7areer planning and development,

G. 6uccession planning,

I. &erformance appraisal,

J. Bmployee*s participation in management,

. Luality circles,

K. 2rganization change and organization development.

Per%or'ance "ppraisal&erformance %ppraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. &erformance appraisal isgenerally done in systematic ways which are as follows:

8. The super"isors measure the pay of employees and compare it #ith targetsand plans.

9. The super"isor analyses the factors ehind #or! performances of employees.

:. The employers are in position to guide the employees for a etterperformance.

O+,ecti(es o% Per%or'ance "ppraisal

&erformance %ppraisal can be done with following objectives in mind:

8. To maintain records in order to determine compensation pac!ages, #agestructure, salaries raises, etc.

9. To identify the strengths and #ea!nesses of employees to place right men onright ;o.


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:. To maintain and assess the potential present in a person for further gro#thand de"elopment.

. 3t ser"es as a asis for in?uencing #or!ing haits of the employees.

@. To re"ie# and retain the promotional and other training programmes.

"d(antages o% Per%or'ance "ppraisal

t is said that performance appraisal is an investment for the company which can be justified by

following advantages:

8. Pro'otion-%erformance Appraisal helps the super"isors to chal! out thepromotion programmes for e(cient employees. 3n this regards, ine(cient#or!ers can e dismissed or demoted in case.

9. Co'pensation-%erformance Appraisal helps in chal!ing out compensationpac!ages for employees. 5erit rating is possile through performanceappraisal. %erformance Appraisal tries to gi"e #orth to a performance.*ompensation pac!ages #hich includes onus, high salary rates, etraene4ts, allo#ances and pre+reBuisites are dependent on performanceappraisal. The criteria should e merit rather than seniority.

:. /'plo0ees De(elop'ent-The systematic procedure of performanceappraisal helps the super"isors to frame training policies and programmes. 3thelps to analyse strengths and #ea!nesses of employees so that ne# ;oscan e designed for e(cient employees. 3t also helps in framing futurede"elopment programmes.


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. The suordinates can also understand and create a trust andcon4dence in superiors.

c. 3t also helps in maintaining cordial and congenial laour managementrelationship.

d. 3t de"elops the spirit of #or! and oosts the morale of employees.

%ll the above factors ensure effective communication.

>. !oti(ation-%erformance appraisal ser"es as a moti"ation tool. Throughe"aluating performance of employees, a person$s e(ciency can edetermined if the targets are achie"ed. This "ery #ell moti"ates a person foretter ;o and helps him to impro"e his performance in the future.

Potential "ppraisal

The potential appraisal refers to the appraisal i.e. identification of the hidden talents and s!ills of

a person. The person might or might not be aware of them. &otential appraisal is a future

oriented appraisal whose main objective is to identify and evaluate the potential of the employees

to assume higher positions and responsibilities in the organizational hierarchy. Manyorganisations consider and use potential appraisal as a part of the performance appraisal

processes.

?"e purposes of a potential revie are:

8. to inform employees of their future prospects"

F. to enable the organisation to draft a management succession programme"

G. to update training and recruitment activities"

I. to advise employees about the wor! to be done to enhance .their career opportunities.

?ec"ni!ues of potential appraisal:

8. 6elf appraisals

F. &eer appraisals


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G. 6uperior appraisals

I. MA2

J. &sychological and psychometric tests

. Management games li!e role playing

K.


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constructive response in the subordinate. @iven below are some guidelines that could be

followed in giving feedbac!:

5eedbac! should be descriptive and non- evaluative. Rather than putting the employee in

a defensive position by telling him) >our coming in late convinces me that you are not

serious about your wor!), a manager may say, ( notice that you have been regularlycoming late and am deeply concerned about this).

t should be focused on the behavior of the person rather than on the person himself. t is

necessary to distinguish between the individual and his behavior in conveying thenegative feedbac!. t should be clear to the employee that what is being rejected or

criticized is some specific behavior of his. The intent is not to condemn the employee as

an individual.

Dhen conveying feedbac!, it is generally desirable to bac! it up with few e#amples of

actual events. 7are must be e#ercised not to overdo this as the subordinate may

misinterpret it that the superior is systematically building up a well-documented caseagainst him.

5eedbac! should be given timely. t should be given at the first opportunity when the

employee is in the receptive mood.

5eedbac! should be continuous. t should become a regular practice so that the

subordinate develops an ability to accept and act upon the feedbac!.

5eedbac! should be chec!ed and verified. This will ensure that the subordinate has not

misinterpreted the feedbac! received from his superior.

D/. &re-Intervie &reparation:

Ma!e sure you !now what was mutually agreed in terms of job responsibilities

Review the employee*s bac!ground, education, training and e#perience.

'etermine the strengths and development needs to be discussed with the employee.

dentify areas that need attention during the ne#t review period.

Ma!e sure that the employee has sufficient advance notice for the interview so that he has

time to do his own preparation.

t is always useful to note down the !ey points on a piece of paper.

D0. Intervie


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Ae sincere, informal and friendly. B#plain the purpose of the discussion and ma!e it clear

to the subordinate that the interview is a two way communication.

Bncourage the employee to discuss how he appraises his own performance.

Aefore discussing suggestions you have for his development, encourage the employee totell his own plans.

Ma!e a record of plans you and the employee have made, points re$uiring follow-up.

Career Planning

2Cecti"e H5 encompasses career planning, career de"elopment and succession

planning. An organization #ithout career planning and career de"elopment

initiati"es is li!ely to encounter the highest rate of attrition, causing much harm to

their plans and programmes. 'imilarly #ithout succession planning managing of

"acancies, particularly at higher le"els, ecome di(cult. There are eamples of

many organizations that had to suCer for not eing ale to 4nd a right successor for

their !ey positions. With the increase scope for ;o moility and corporate race for

gloal headhunting of good performers, it is no# a #ell estalished fact that normal

employment span for !ey performers remains a#fully short.

7areer is a se$uence of attitudes and behaviours associated with the series of job and wor!

related activities over a person*s lifetime.

>et in another way, it may be defined as a succession of related jobs, arranged in hierarchical

order, through which a person moves in an organization. %s the literal definition of careerfocuses on an individually perceived se$uence, to be more accurate, career may be either

individual-centred or organizational-centred. Therefore, career is often defined separately as

e#ternal career and internal career. #;ternal careerrefers to the objective categories used by

society and organizations to describe the progression of steps through a given occupation, while

internal careerrefers to the set of steps or stages which ma!e up the individual*s own concept

of career progression within an occupation. 5or such two different approaches, in organizational

conte#t, career can be identified as an integrated pace of vertical lateral movement in an

occupation of an individual over his employment span.

7areer &lanning vs. /uman Resource &lanning

/uman Resource planning is the process of analyzing and estimating the need for andavailability of employees. Through /uman Resource planning, the &ersonnel 'epartment is able

to prepare a summary of s!ills and potentials available within the organization. 7areer planning

assists in finding those employees who could be groomed for higher level positions, on thestrength of their performance.


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/uman Resource planning gives valuable information about the availability of human resources

for e#pansion, growth, etc. e#pansion of facilities, construction of a new plant, opening a new

branch, launching a new product, etc.. 2n the other hand, career planning only gives us a pictureof who could succeed in case any major developments leading to retirement, death, resignation

of e#isting employees.

/uman Resource planning is tied to the overall strategic planning efforts of the organization.

There cannot be an effective manpower planning, if career planning is not carried out properly.

Training and De(elop'ent

Training is de4ned y Wayne *ascio as training consists of planed programs

underta!en to impro"e employee !no#ledge, s!ills, attitude, and social eha"ior so

that the performance of the organization impro"es consideraly.

Training is normally "ie#ed as a short process. 3t is applied to technical staC, lo#er,middle, senior le"el management. When applied to lo#er and middle management

staC it is called as training and for senior le"el it is called managerial de"elopment

programEeecuti"e de"elopment programEde"elopment program.

O+,ecti(esp$rposegoals o% training and de(elop'ent

Training is de4ned y Wayne *ascio as training consists of planed programs

underta!en to impro"e employee !no#ledge, s!ills, attitude, and social eha"ior so

that the performance of the organization impro"es consideraly.

The purpose of training and de"elopment can e eplained as follo#s.

8. 3mpro"ing Buality of #or! force D+Training and de"elopment help companies to impro"e the Buality of #or! done y

their employees. Training programs concentrate on speci4c areas. There y

impro"ing the Buality of #or! in that area.

9. 2nhance employee gro#th D+

2"ery employee #ho ta!es de"elopment program ecomes etter at his ;o.

Training pro"ides perfection and reBuired practice, therefore employee$s area ale

to de"elop them professionally.

:. %re"ents osolescence D+Through training and de"elopment the employee is up to date #ith ne# technology

and the fear of eing thro#n out of the ;o is reduced.


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=. -ridging the gap et#een planning and implementation D+

%lans made y companies epect people to achie"e certain targets #ithin certain

time limit #ith certain Buality for this employee performance has to e accurate and

perfect. Training helps in achie"ing accuracy and perfection.

>. Health and safety measures D+Training and de"elopment program clearly identi4es and teaches employees aout

the diCerent ris! in"ol"ed in their ;o, the diCerent prolems that can arise and ho#

to pre"ent such prolems. This helps to impro"e the health and safety measures in

the company.

!ethods o% training operating personnel%actor0 orers

On the ,o+ 'ethod -

n the ;o method refers to training gi"en to personnel inside the company. There

are diCerent methods of on the ;o training.

8. o rotation D+ 69 mar!s7

This method enales the company to train managerial personnel in departmental

#or!. They are taught e"erything aout the department. 'tarting from the lo#est

le"el ;o in the department to the highest le"el ;o. This helps #hen the person

ta!es o"er as a manager and is reBuired to chec! #hether his ;uniors are doing the

;o properly or not. 2"ery minute detail is studied.

9. %lanned progression D+ 69 mar!s7

3n this method ;uniors are assigned a certain ;o of their senior in addition to their

o#n ;o. The method allo#s the employee to slo#ly learn the ;o of his senior so

that #hen he is promoted to his senior ;o it ecomes "ery easy for him to ad;ust to

the ne# situation. 3t also pro"ides a chance to learn higher le"el ;os.

:. *oaching and counseling D+ 69 mar!s7

*oaching refers to actually teaching a ;o to a ;unior. The senior person #ho is the

coach actually teaches his ;unior regarding ho# the #or! must e handled and ho#

decisions must e ta!en, the diCerent techniBues that can e used on the ;o, ho#

to handle pressure. There is acti"e participation from the senior.

*ounseling refers to ad"ising the ;unior employee as and #hen he faces prolems.

The counselor superior plays an ad"isory role and does not acti"ely teach

employees.


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=. unior oard D+ 69 mar!s7

3n this method a group of ;unior le"el managers are identi4ed and they #or!

together in a group called ;unior oard. They function ;ust li!e the oard of directors.

They identify certain prolem, they ha"e to study the prolem and pro"ide

suggestions. This method impro"es team #or! and decision ma!ing aility. 3t gi"esan idea aout the intensity of prolem faced y the company. nly promising and

capale ;unior le"el managers are selected for this method.

O6 the ,o+ training 'ethod -

C the ;o training refers to method of training gi"en outside the company. The

diCerent methods adopted here are

8. *lassroom method D+

The classroom method is used #hen a group of managers ha"e to e trained in

theoretical aspects. The training in"ol"es using lectures, audio "isuals, case study,

role play method, group discussions etc. The method is interacti"e and pro"ides

"ery good results.

9. 'imulation D+

'imulation in"ol"es creating atmosphere #hich is "ery similar to the original #or!

en"ironment. The method helps to train manager handling stress, ta!ing immediate

decisions, handling pressure on the ;os etc. An actual feel of the real ;o

en"ironment is gi"en here.

:. -usiness games D+

This method in"ol"es pro"iding a mar!et situation to the trainee manager andas!ing him to pro"ide solutions. 3f there are many people to e trained they can e

di"ided into groups and each group ecomes a separate team and play against

each other.

. eadings D+


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This method in"ol"es encouraging the trainee manager to increase his reading

related to his su;ect and then as! him to ma!e a presentation on #hat he has

learned. 3nformation can e collected y trainee manager from oo!s, magazines

and internet etc.

Reards

The only way employees will fulfill your dream is to share in the dream. Reward systems are themechanisms that ma!e this happen. =/owever, reward systems are much more than just bonus

plans and stoc! options. Dhile they often include both of these incentives, they can also include

awards and other recognition, promotions, reassignment, non-monetary bonuses e.g., vacations,or a simple than! you.

% reward system, in isolation, can serve operational needs badly. Rewards influence behaviour,

attitudes, job satisfactions and performance. Reward system can be classified as:

Monetary Rewards directly, indirectly or un-related to actual performance outcomes

Monetary e$uivalent Rewards

3on-monetary rewards

5o Reard System 5elps ?"e Organization E

8. Reward can act as the catalyst for improved performance and better productivity.

F. Rewards are generally rec!oned to improve productivity by somewhere of the order of F;to G; per cent. This is nearly twice as much as that attained by goal setting or job-

redesign.

G. t helps to lin! to strategic direction and business goals.

I. They can actively engage and renew the overall sense of community and mission of an

organization.

J. t increases the fre$uency of an employee action.

. Rewards increase the chances that a performance will be repeated.

K. Rewards help to create a more pleasant wor! environment, one where rewards are usedmore fre$uently than discipline to manage employee behavior.

E. Through reward system individuals feel ac!nowledged for their

accomplishments, contributions, and performance. The staff will be motivated and

inspired to continuously strive for e#cellence.


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9. %n effectively designed and managed reward program can drive an organizations change

process by positively reinforcing desired behaviors.

8;. Rewards act as reinforcers for a variety of individual behaviour.

/'plo0ee el%areDelfare includes anything that is done for the comfort and improvement of employees and is

provided over and above the wages. Delfare helps in !eeping the morale and motivation of the

employees high so as to retain the employees for longer duration. The welfare measures need not

be in monetary terms only but in any !ind+forms. Bmployee welfare includes monitoring ofwor!ing conditions, creation of industrial harmony through infrastructure for health, industrial

relations and insurance against disease, accident and unemployment for the wor!ers and their

families.


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The statutory welfare schemes include the following provisions:

8. +rin1ing ater:%t all the wor!ing places safe hygienic drin!ing water should be

provided.

F. Facilities for sitting: n every organization, especially factories, suitable seatingarrangements are to be provided.

G. First aid appliances:5irst aid appliances are to be provided and should be readily

assessable so that in case of any minor accident initial medication can be provided to theneeded employee.

I. *atrines and $rinals:% sufficient number of latrines and urinals are to be provided in

the office and factory premises and are also to be maintained in a neat and clean

condition.J. %anteen facilities:7afeteria or canteens are to be provided by the employer so as to

provide hygienic and nutritious food to the employees.

. Spittoons:n every wor! place, such as ware houses, store places, in the doc! area and

office premises spittoons are to be provided in convenient places and same are to bemaintained in a hygienic condition.

K. *ig"ting:&roper and sufficient lights are to be provided for employees so that they canwor! safely during the night shifts.

E. as"ing places:%de$uate washing places such as bathrooms, wash basins with tap and

tap on the stand pipe are provided in the port area in the vicinity of the wor! places.9. %"anging rooms:%de$uate changing rooms are to be provided for wor!ers to change

their cloth in the factory area and office premises. %de$uate loc!ers are also provided to

the wor!ers to !eep their clothes and belongings.

8;. Rest rooms:%de$uate numbers of restrooms are provided to the wor!ers with provisionsof water supply, wash basins, toilets, bathrooms, etc.

!oti(ation

!oti(ationis a term that refers to a process that elicits, controls, and sustainscertain eha"iours. At one time, employees #ere considered ;ust another input intothe production of goods and ser"ices. -ut this changed after the Ha#thorne 'tudies.

The Ha#thorne studies #ere conducted y 2lton 5ayo at Ha#thorne %lant in the89Is. The researches #ere studying the eCect of diCerent #or!ing en"ironmentson producti"ity. They used lighting as an eperimental "ariale 6the eCect of rightlighting and dull lighting7. 3nitially they noticed that employees #ere #or!ing harderut it #as not ecause of the lighting. They concluded that producti"ity increaseddue to attention that the #or!ers got from the research team and not ecause of

changes to the eperimental "ariale. Ha#thorne studies found that employees arenot moti"ated solely y money ut moti"ation is lin!ed to employee eha"iour andtheir attitudes. The Ha#thorne 'tudies egan the human relations approach tomanagement, so the needs and moti"ation of employees ecame the primary focusof managers.

There are t#o types of moti"ation as originally identi4ed y Herzerg et al68=@7D


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Intrinsic motivation J the self+generated factors that in?uence people toeha"e in a particular #ay or to mo"e in a particular direction. These factorsinclude responsiility 6feeling that the #or! is important and ha"ing controlo"er one$s o#n resources7, autonomy 6freedom to act7, scope to use andde"elop s!ills and ailities, interesting and challenging #or! and

opportunities for ad"ancement. Extrinsic motivation J #hat is done to or for people to moti"ate themK Thisincludes re#ards, such as increased pay, praise, or promotion, andpunishments, such as disciplinary action, #ithholding pay, or criticism.2trinsic moti"ators can ha"e an immediate and po#erful eCect, ut it #illnot necessarily last long. The intrinsic moti"ators, #hich are concerned #iththe Buality of #or!ing life$ 6a phrase and mo"ement that emerged from thisconcept7, are li!ely to ha"e a deeper and longer+term eCect ecause they areinherent in indi"iduals and not imposed from outside.

Theories o% !oti(ation"+raha' !aslo7s &ierarch0 o% #eeds

Dhen motivation theory is being considered the first theory that is being recalled is Maslow*s

hierarchy of needs which he has introduced in his 89IG article named as (% Theory of /umanMotivation). %ccording to this theory, individual strives to see! a higher need when lower needs

are fulfilled. 2nce a lower-level need is satisfied, it no longer serves as a source of motivation.

3eeds are motivators only when they are unsatisfied.

n the first level, p"ysiological needse#ist which include the most basic needs for

humans to survive, such as air, water and food.

n the second level, safety needse#ist which include personal security, health, well-being

and safety against accidents remain.

n the third level, belonging needse#it. This is where people need to feel a sense of

belonging and acceptance. t is about relationships, families and friendship. 2rganizations

fulfill this need for people.


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n the fourth level, self-esteem needsremain. This is where people loo!s to be respected

and to have self-respect. %chievement needs, respect of others are in this level.

n the top-level, self-actualization needse#ist. This level of need pertains to realising the

person*s full potential.

(lderfer=s #RG ?"eory

n 899, 7layton &. %lderfer, simplified Maslow*s theory by categorizing hierarchy of needs intothree categories:

&hysiological and 6afety needs are merged in #;istence eeds,

Aelonging needs is named as Relatedness eeds'

6elf-esteem and 6elf-actualization needs are merged in Grot" eeds

&erz+erg7s To actor Theor0

5rederic! /erzberg, introduced his Two 5actor Theory in 89J9. /e suggested that there are two

!inds of factors affect motivation, and they do it in different ways:

. 5ygiene factors:% series of hygiene factors create dissatisfaction if individuals perceive

them as inade$uate or ine$uitable, yet individuals will not be significantly motivated if these

factors are viewed as ade$uate or good. /ygiene factors are e#trinsic and include factors such assalary or remuneration, job security and wor!ing conditions.

/. Motivators:They are intrinsic factors such as sense of achievement, recognition,

responsibility, and personal growth.

The hygiene factors determine dissatisfaction, and motivators determine satisfaction. /erzberg

theory conforms with satisfaction theories which assert that (a satisfied employee tends to wor!

in the same organization but this satisfaction does not always result in better performance). n

other words, satisfaction does not correlate it" productivity.

!cClelland7s "chie(e'ent #eed Theor0

eeds for ac"ievement: The person who have a high need for achievement see!s

achievement and tries to attain challenging goals. There is a strong need for feedbac! as

to achievement and progress, and a need for a sense of accomplishment. The person whohave a high achievement need li!es to ta!e personal responsibility.


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eeds for affiliation: The person who have a high need for affiliation needs harmonious

relationships with people and needs to be accepted by other people. &eople-oriented

rather than tas!-oriented.

eeds for poer: The person who have a need for power wants to direct and command

other people. Most managers have a high need for power.

%lthough these categories of needs are not e#lusive, generally individuals develop a dominant

bias or emphasis towards one of the three needs. Bntrepreneurs usually have high degree of

achivement needs.

Incentive ?"eory

ncentive theory suggests that employee will increase her+his effort to obtain a desired reward.

This is based on the general principle of reinforcement. The desired outcome is usually (money).

This theory is coherent with the early economic theories where man is supposed to be rational

and forecasts are based on the principle of (economic man).

&o !anagers !oti(ate

Bmployees may not need a pay raise as much as they do personal than!s from their manager for

a job well done. 6how your wor!ers that you support them, and encourage better performance by

motivating them in the following ways:

&ersonally than! employees for doing a good job N one on one, in writing, or both. 'o it

promptly, often, and sincerely.

Ae willing to ta!e time to meet with and listen to employees. @ive them as much time as

they need or want.

&rovide specific feedbac! about the performance of the employee, the department, and

the organization.

6trive to create a wor! environment that is open, trusting, and fun. Bncourage new ideas

and initiative.

&rovide information about upcoming products and strategies, how the company ma!esand loses money, and how each employee fits into the overall plan.

nvolve employees in decisions, especially those decisions that directly affect them.

Bncourage employees to have a sense of ownership in their wor! and their wor!

environment.


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7reate a partnership with each employee, giving them a chance to grow and learn new

s!ills. 6how them how you can help them meet their goals within the conte#t of meeting

the organization*s goals.

7elebrate successes of the company, the department, and the individuals in it. Ta!e time

for team- and morale-building meetings and activities.

Ose performance as the basis for recognizing, rewarding, and promoting people. 'eal

with low and marginal performers so that they improve their performance or leave the

organization.

Concept o% !orale

!eaning-

(Morale) a 5rench word means (condition with respect to discipline and confidence pride, fi#ing

of purpose, faith in the course fought for).

t has been defined in many ways but all definitions revolve around the attitude towards wor! for

the accomplishment of organizational goals. Thus morale is intimately connected with

organization. f the morale of employees+ wor!ers is high, not only the production+ output is

increased and maintained but the wor!ers feel satisfied and contented.

n this way the management shall find it easy to motivate the wor!ers and ma!e them feel as part

and parcel of the organization. Morale also generates confidence in wor!ers and !eep their spirit

very high and competitive.

Signi8cance o% !orale-

/igh morale e#ists when employee attitudes are favaourable towards their wor!, their company

and their fellow wor!ers- favourable to the total situation of the group and to the attainment of its

goals.


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actors "6ecting !orale-

The employee morale is a very comple# phenomenon and is influenced by many factors.

'ifferent authors li!e Mc5arland. Aradshaw and 1rugman. Roach and %pple white name given

different criterion for the determination of morale.

On t"e basis of all t"ese classifications' t"e important factors in t"e determination of levels

of morale are as describe belo:

1 The /rganiation+

The first factor affecting the employee morale is the organization itself. The organization

influences the wor!er*s attitudes to their jobs. The public reputation of an organization may build

up for better or worse, their attitudes towards it.

, The ature o% 2or+

The nature of the wor!, the wor!er is e#pected to perform also affects his attitude towards the

job as well as his morale. f the employee is e#pected to perform routine or specialized jobs, he

will feel bored and alienated. Repetition of the same tas! again and again ma!es the wor!ing

situation worse for the employees. %nother factor is the large impersonal organizational

structure. 6ometimes, if the employee feels that he is just a cog in the machine instead of a

person, his morale will become very low.


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good mental and physical health is generally high as compared to those who lac! self confidence

or suffer from poor physical or mental health.

! 2orers 6ere#tion o% 7ear"s yste&+

The wor!er*s perception of past rewards and future opportunities for rewards affect their morale

to a substantial e#tent. f the wor!ers regard the rewards as fair and satisfactory, their morale will

tend to by higher than if the perception is in the opposite direction. Moreover, if the rewards and

opportunities for the future tend to be blea!, morale will tend to be low as compared to the

situation where the wor!er perceives opportunities for satisfaction and for attainment in the

rewards that lie ahead in the future.

! The loyees .ge+

6tudies have reported that age and morale are directly related. 2ther things being e$ual, elder

employees seem to have higher morale. This is because of the reason that perhaps younger

wor!ers are more dissatisfied with higher e#pectations than their elders. The older employees

have more stability which comes with maturity, a serious attitude towards job. more reliability,

less absenteeism, proven steady wor! habits, a sense of responsibility and loyalty and less

tendency to be distracted by outside interest as influences.

$ The loyees "uational evel+

6tudies have concluded an inverse relationship in the educational level of the employee and his

morale. /igher the educational level lower will be the job satisfaction and vice versa. The higher

he thin!s he should be the more dissatisfied he will be.

8 The loyees /u#ational evel+

The occupational level of the employee also influences his level of morale. The higher up in

organisational hierarchy an employee is higher will be his morale. The morale of the people who

are lower in the levels of hierarchy is generally low because they compare their own attainments

with those of others.

10 The / the :o .tivities o% the loyee+

The relationship of an employer with his family and wor! group influences his behaviour and

attitude while he is on the job. /is off the job activities e.g. whether his family life is happy or

not, whether he has e#cessive drin!ing habits etc. The influences and pressures of a formal and

informal group have a significant effect on the morale of wor!ers.

Role o% 9ncenti(es in B$ilding $p !orale

Incentiveis an act or promise for greater action. t is also called as a stimulus to greater action.

ncentives are something which are given in addition to wagers. t means additional

remuneration or benefit to an employee in recognition of achievement or better wor!. ncentivesprovide a spur or zeal in the employees for better performance. t is a natural thing that nobody


37/47

acts without a purpose behind. Therefore, a hope for a reward is a powerful incentive to motivate

employees. Aesides monetary incentive, there are some other stimuli which can drive a person to

better. This will include job satisfaction, job security, job promotion, and pride foraccomplishment. Therefore, incentives really can sometimes wor! to accomplish the goals of a

concern. The need of incentives can be many:-

8. To increase productivity,

F. To drive or arouse a stimulus wor!,

G. To enhance commitment in wor! performance,

I. To psychologically satisfy a person which leads to job satisfaction,

J. To shape the behavior or outloo! of subordinate towards wor!,

. To inculcate zeal and enthusiasm towards wor!,

K. To get the ma#imum of their capabilities so that they are e#ploited and utilized

ma#imally.

Therefore, management has to offer the following two categories of incentives to motivateemployees:

8. Monetary incentives-Those incentives which satisfy the subordinates by providing them

rewards in terms of rupees. Money has been recognized as a chief source of satisfying the

needs of people. Money is also helpful to satisfy the social needs by possessing various

material items. Therefore, money not only satisfies psychological needs but also thesecurity and social needs. Therefore, in many factories, various wage plans and bonus

schemes are introduced to motivate and stimulate the people to wor!.

F. on-monetary incentives-Aesides the monetary incentives, there are certain non-

financial incentives which can satisfy the ego and self- actualization needs of employees.

The incentives which cannot be measured in terms of money are under the category of

(3on- monetary incentives). Dhenever a manager has to satisfy the psychological needsof the subordinates, he ma!es use of non-financial incentives. 3on- financial incentives

can be of the following types:-

a. Security of service-?ob security is an incentive which provides great motivationto employees. f his job is secured, he will put ma#imum efforts to achieve theobjectives of the enterprise. This also helps since he is very far off from mental

tension and he can give his best to the enterprise.

b. &raise or recognition-The praise or recognition is another non- financialincentive which satisfies the ego needs of the employees. 6ometimes praise


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becomes more effective than any other incentive. The employees will respond

more to praise and try to give the best of their abilities to a concern.

c. Suggestion sc"eme-The organization should loo! forward to ta!ing suggestionsand inviting suggestion schemes from the subordinates. This inculcates a spirit of

participation in the employees. This can be done by publishing various articleswritten by employees to improve the wor! environment which can be published in

various magazines of the company. This also is helpful to motivate the employeesto feel important and they can also be in search for innovative methods which can

be applied for better wor! methods. This ultimately helps in growing a concern

and adapting new methods of operations.

d. Hob enric"ment-?ob enrichment is another non- monetary incentive in which the

job of a wor!er can be enriched. This can be done by increasing his

responsibilities, giving him an important designation, increasing the content and

nature of the wor!. This way efficient wor!er can get challenging jobs in which

they can prove their worth. This also helps in the greatest motivation of theefficient employees.

e. &romotion opportunities-&romotion is an effective tool to increase the spirit to

wor! in a concern. f the employees are provided opportunities for theadvancement and growth, they feel satisfied and contented and they become more

committed to the organization.

Co''$nication

%ommunicationfrom


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%ommunication

The communication process consists of several components.


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Face+to+Face + Face+to+face or personal communication is one of the richest

channels of communication that can e used #ithin an organization. %hysical

presence, the tone of the spea!erMs "oice and facial epressions help

recipients of a message interpret that message as the spea!er intends. This

is the est channel to use for comple or emotionally charged messages,

ecause it allo#s for interaction et#een spea!er and recipients to clarify

amiguity. A spea!er can e"aluate #hether an audience has recei"ed his

message as intended and as! or ans#er follo#+up Buestions.

-roadcast 5edia + TN, radio and loud spea!ers all fall #ithin the roadcast

media communication channel. These types of media should e used #hen

addressing a mass audience. -usinesses see!ing to notify customers of a

ne# product may ad"ertise or do promotions using a roadcast channel.

'imilarly, a *2 may do a gloal company address y ha"ing a tele"ision

feed roadcast across gloal sites. When a message intended for a mass

audience can e enhanced y eing presented in a "isual or auditory format,

a roadcast channel should e used.

5oile + A moile communication channel should e used #hen a pri"ate or

more comple message needs to e relayed to an indi"idual or small group.

A moile channel allo#s for an interacti"e echange and gi"es the recipient

the added ene4t of interpreting the spea!erMs tone along #ith the message.

'ome #ithin an organization may opt to use this channel "ersus a face+to+

face channel to sa"e on the time and eCort it #ould ta!e to coordinate a

face+to+face meeting.

2lectronic+ 2lectronic communication channels encompass email, 3nternet,

intranet and social media platforms. This channel can e used for one+on+

one, group or mass communication. 3t is a less personal method of

communication ut more e(cient. When using this channel, care must e

ta!en to craft messages #ith clarity and to a"oid the use of sarcasm and

innuendo unless the message speci4cally calls for it.

Written + Written communication should e used #hen a message that does

not reBuire interaction needs to e communicated to an employee or group.

%olicies, letters, memos, manuals, notices and announcements are all

messages that #or! #ell for this channel. ecipients may follo# up through

an electronic or face+to+face channel if Buestions arise aout a #ritten

message.

Oral (ers$s :ritten Co''$nication


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Written communicationis the process of communication in which messages or information is

e#changed or communicated within sender and receiver through written form.

2n the other hand, oral communicationis the process of communicationin which messages or

information is e#changed or communicated within sender and receiver through the word of

mouth. The differences between oral and written communication are of followers:

Cerbal versus non-verbal %ommunication

Serbal communication is face-to-face conversation between people. t includes sounds, words, or

spea!ing. Tone of voice, volume, and pitch are all ways to effectively communicate verbally.

3onverbal communication includes gestures, facial e#pressions, body movement, timing, touch,

and anything else done without spea!ing. &eople seem to notice nonverbal communication more

than verbal. 5or this reason, its important to control yourself nonverbally.
http://thebusinesscommunication.com/what-is-oral-communication/http://thebusinesscommunication.com/what-is-oral-communication/http://thebusinesscommunication.com/what-is-oral-communication/


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$pard Flo of %ommunication:7ommunication that flows to a higher level in an

organization is called upward communication. t provides feedbac! on how well the organizationis functioning. The subordinates use upward communication to convey their problems and

performances to their superiors.

The subordinates also use upward communication to tell how well they have understood the

downward communication. t can also be used by the employees to share their views and ideasand to participate in the decision-ma!ing process.

Opward communication leads to a more committed and loyal wor!force in an organization

because the employees are given a chance to raise and spea! dissatisfaction issues to the higher

levels. The managers get to !now about the employees feelings towards their jobs, peers,supervisor and organization in general. Managers can thus accordingly ta!e actions for

improving things.

@rievance Redressal 6ystem, 7omplaint and 6uggestion Ao#, ?ob 6atisfaction surveys etc all

help in improving upward communication. 2ther e#amples of Opward 7ommunication are-performance reports made by low level management for reviewing by higher level management,

employee attitude surveys, letters from employees, employee-manager discussions etc.

*ateral ) 5orizontal %ommunication:7ommunication that ta!es place at same levels of

hierarchy in an organization is called lateral communication, i.e., communication between peers,

between managers at same levels or between any horizontally e$uivalent organizational member.

The advantages of horizontal communication are as follows:

3t is time sa"ing.

3t facilitates co+ordination of the tas!.

3t facilitates co+operation among team memers.

3t pro"ides emotional and social assistance to the organizational memers.

3t is a means of information sharing

3t can also e used for resol"ing con?icts of a department #ith other

department or con?icts #ithin a department.

+iagonal %ommunication:7ommunication that ta!es place between a manager and employeesof other wor!groups is called diagonal communication. t generally does not appear on

organizational chart. 5or instance - To design a training module a training manager interacts with

an 2perations personnel to en$uire about the way they perform their tas!.

#;ternal %ommunication:7ommunication that ta!es place between a manager and e#ternal

groups such as - suppliers, vendors, ban!s, financial institutes etc. 5or instance - To raise capital

the Managing director would interact with the Aan! Manager.


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olloing are the 'ain co''$nication +arriers-

8. Percept$al and ;ang$age Di6erences-%erception is generally ho# eachindi"idual interprets the #orld around him. All generally #ant to recei"emessages #hich are signi4cant to them. -ut any message #hich is againsttheir "alues is not accepted. A same e"ent may e ta!en diCerently ydiCerent indi"iduals. For eample D A person is on lea"e for a month due topersonal reasons 6family memer eing critical7. The H 5anager might e inconfusion #hether to retain that employee or not, the immediate managermight thin! of replacement ecause his teams producti"ity is einghampered, the family memers might ta!e him as an emotional support.

The linguistic differences also lead to communication brea!down. 6ame word may mean

different to different individuals. 5or e#ample: consider a word (value).

a. What is the(al$eof this LaptopK

. 3 (al$eour relationK

c. What is the (al$eof learning technical s!illsK

(Calue) means different in different sentences. 7ommunication brea!down occurs if there is

wrong perception by the receiver.

Information Overload:Managers are surrounded with a pool of information. t is essentialto control this information flow else the information is li!ely to be misinterpreted or forgotten or

overloo!ed. %s a result communication is less effective.

Inattention:%t times we just not listen, but only hear. 5or e#ample a traveler may payattention to one (32 &%R13@) sign, but if such sign is put all over the city, he no longer

listens to it. Thus, repetitive messages should be ignored for effective communication. 6imilarly

if a superior is engrossed in his paper wor! and his subordinate e#plains him his problem, the

superior may not get what he is saying and it leads to disappointment of subordinate. ?ime &ressures:2ften in organization the targets have to be achieved within a specified

time period, the failure of which has adverse conse$uences. n a haste to meet deadlines, the

formal channels of communication are shortened, or messages are partially given, i.e., notcompletely transferred. Thus sufficient time should be given for effective communication.

+istraction)oise:7ommunication is also affected a lot by noise to distractions. &hysical

distractions are also there such as, poor lightning, uncomfortable sitting, unhygienic room also

affects communication in a meeting. 6imilarly use of loud spea!ers interferes withcommunication.

#motions:Bmotional state at a particular point of time also affects communication. f thereceiver feels that communicator is angry he interprets that the information being sent is very

bad. Dhile he ta!es it differently if the communicator is happy and jovial in that case the

message is interpreted to be good and interesting.

%omple;ity in Organizational Structure:@reater the hierarchy in an organization i.e.more the number of managerial levels, more is the chances of communication getting destroyed.


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2nly the people at the top level can see the overall picture while the people at low level just have

!nowledge about their own area and a little !nowledge about other areas.

&oor retention:/uman memory cannot function beyond a limit. 2ne cant always retain

what is being told specially if he is not interested or not attentive. This leads to communication

brea!down.

Role of ?ec"nology in usiness %ommunication

Technology has altered modern life in many ways, especially in the wor!place. The invention ofcomputers, the miniaturization of electronics and the development of wireless communication

have all altered the business world. Ausiness communication, in particular, has seen some of the

greatest advancements due to technological developments.

%ellular &"one - 2ne of the biggest advancements in communication has been the developmentof the cellular phone. n the past, your only chance of reaching employees was when they were at

their des!s, prompting endless games of (phone tag) as people tried to connect during busy

wor!days. 3ow, wor!ers are reachable no matter where they are, and even during non-wor!hours. The development of smartphones has also greatly e#panded the types of business

activities you can transact when out of the office, increasing productivity and e#tending the

wor!day.

?eleconferencing - /igh-speed data connections allow for the use of teleconferencing, virtualmeetings held over audio and video lin!s. Teleconferencing can save substantial amounts of

money otherwise spent on travel by connecting important employees in far-flung branches

together to share ideas and information. The use of virtual whiteboards, communal data-sharingplatforms where remote users can interact as if around the same table, further increase the

possibilities of the virtual wor!place.

Image Scanning - 'ocument and image scanners allow wor!ers to convert paperwor!, plans,

diagrams and photos into electronic files $uic!ly for storage and transmission. nstead of relyingon hand delivery of important documents across town or across the country, employees can scan

and send these files in a matter of seconds across the nternet. %n architectural firm could, for

instance, scan updates to a plan, transmit it to the client, receive changes and ma!e alterations all

before a messenger would have been able to ma!e the first run across town.

RFI+ - The development of radio fre$uency identification has substantially changed the field ofbusiness logistics and, paired with other business communication advancements, has the

potential to increase a company*s efficiency significantly. R5' tags are small chips that respondto radio waves with encoded information, allowing companies to tag and trac! items and

materials. Dhen an employee activates a scanning device, all R5' tags within range will

respond with their coded information, allowing for $uic! updates of warehouse inventories and

real-time trac!ing of shipments as they pass through the supply chain. Aeing able to accessinventory on demand allows companies to ta!e advantage of (just-in-time) shipping, providing


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products and material only when needed to reduce warehousing re$uirements and reduce the

amount of e#cess stoc! stored at retail or office facilities.

%orporate Governance

7orporate @overnance refers to the way a corporation is governed. t is the techni$ue by whichcompanies are directed and managed. t means carrying the business as per the sta!eholders*

desires. t is actually conducted by the board of 'irectors and the concerned committees for the

company*s sta!eholder*s benefit. t is all about balancing individual and societal goals, as well

as, economic and social goals.

7orporate @overnance is the interaction between various participants shareholders, board of

directors, and company*s management in shaping corporation*s performance and the way it is

proceeding towards. The relationship between the owners and the managers in an organization

must be healthy and there should be no conflict between the two. The owners must see that

individual*s actual performance is according to the standard performance. These dimensions of

corporate governance should not be overloo!ed.

Bene8ts o% Corporate . ood corporate go"ernance also minimizes #astages, corruption, ris!s andmismanagement.

@. 3t helps in rand formation and de"elopment.

O. 3t ensures organization in managed in a manner that 4ts the est interests ofall.


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Three T0pes o% Corporate

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